This ad used two main advertising techniques. The first thing they used was magic ingredients. They say that 3 ingredients can make you smile, instead of the 12 muscles you have to control your mouth. They say their only ingredients are potatoes, oil, and salt. To me, that does not sound very appetizing, so it seems like they would need special ingredients in order to get their chips so appealing.
They use physiological needs because whenever I see a picture of Lay's, or a bag, or anything at all to do with them my mouth instantly starts watering. I would bet that anyone who has ever tried them has the same reaction I do. They use physiological needs to appeal to your inner appetite, and frankly, it works.
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